Higher Interest Rates on Notice Savings Accounts
A notice savings account is a type of savings account where it is required to give notice before making a withdrawal. The amount of notice required can vary depending on the account, but it is typically between 30 and 120 days.
Advantages of A Notice Savings Accounts
One of the main advantages of a notice savings account is that it often offers a higher interest rate than a traditional instant access savings account.
Another advantage of a notice savings account is that it can help to be more disciplined with savings. By requiring to give notice before making a withdrawal, it makes it less tempting to dip into the savings for short-term spending.
Disadvantages of Notice Savings Accounts
The main disadvantage is that they are not suitable if a quick access to funds is required. Notice savings accounts with require to give notice before making a withdrawal.
Savers have to wait for the notice period to expire before being able to make a withdrawal.
Which Banks offer the Highest Interest Rates on Notice Savings Accounts
Like with most savings accounts it is the niche banks that give the highest interest rates.
Interest rates on 90 days Notice Savings Accounts are currently around 3.5%.
Is the Money protected?
It is important to verify if savings at that particular institutions is covered by The Financial Conduct Authority (FCA). Always check if a firm is FCA-authorised.